Tennessee Real Estate Outlook: What to Watch This June 2025

By Buying, Real Estate, Selling June 1, 2025
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As we step into June 2025, Tennessee's real estate landscape presents a dynamic environment shaped by evolving market trends, economic developments, and shifting buyer behaviors. Here's an overview of key factors to watch this month:

šŸ“Š Market Trends and Inventory Dynamics

  • Moderate Price Appreciation: The average home value in Tennessee stands at $332,428, reflecting a 1.2% increase over the past year.

  • Rising Inventory Levels: As of April 2025, there were 41,914 homes for sale in Tennessee, marking a 16.5% year-over-year increase.

  • Extended Time on Market: Homes are now spending an average of 75 days on the market before going under contractā€”up from previous periods.

šŸ™ļø Regional Highlights

Nashville:

  • Luxury Market Growth: Over 18% of listings were priced above $1 million in April 2025.

  • Economic Drivers: Low taxes, a vibrant entertainment scene, and job growth continue to attract new residents and investors.

Middle Tennessee:

  • Steady Demand: Areas like Murfreesboro and Spring Hill remain popular due to their job markets and cost of living.

  • Inventory Expansion: An 11.7% increase in listings means more options for buyers.

Knoxville:

  • Top Market to Watch: Knoxville has been highlighted as one of the most promising markets in 2025, especially for millennial buyers and investors seeking affordability.

šŸ§­ Tips for Buyers and Sellers

For Buyers:

  • Use the Inventory Surge: Increased listings mean more negotiating power and better home selection.

  • Stay Rate-Savvy: Mortgage rates are expected to stay above 6%, so timing and pre-approval are key.

For Sellers:

  • Price Wisely: With more competition, strategic pricing is essential.

  • Stand Out: Highlight in-demand features like home offices, smart home tech, and energy efficiency.

Tennessee's housing market is shifting into a more balanced phaseā€”ideal for strategic buyers and sellers. Want personalized advice on your next move? Letā€™s connect!

šŸ’¬ Got questions about the market? Curious what your home is worth? Drop them in the comments or give us a callā€”we're here to help!

šŸ 
Partners Realty Group
(865) 789 ā€“ 6677
"Your future, your move, our mission."

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About the Author
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John Permaul, CEO/Principal Broker

As the CEO and Principal Broker of Partners Realty Group, John Permaul brings visionary leadership and an unwavering commitment to excellence in the real estate industry. A proud veteran of the U.S. Air Force, John embodies discipline, integrity, and dedicationā€”qualities that have shaped his approach to business and client relationships.

With a robust background as a finance and contracts director, John combines financial expertise and strategic insight to deliver outstanding results for clients and agents alike. His unique skill set ensures that every transaction is handled with precision and professionalism.

Under Johnā€™s leadership, Partners Realty Group has earned a reputation for innovative solutions, personalized service, and a client-first approach. He is passionate about building lasting relationships, navigating complex negotiations, and mentoring the next generation of real estate professionals.